Ukraine postpones signing of gas agreement

MOSCOW (MRC) -- The signing of a gas production-sharing agreement between Ukraine and an international consortium led by US supermajor ExxonMobil has been postponed for the second time in a row, according Upstreamonline.

"We will sign it (the agreement) in February," Ukraine's fuel and energy minister Eduard Stavytsky told reporters on Monday. He did not give a reason for the fresh delay.

The government orginally intended to sign the deal, which is expected to bring Ukraine several billion cubic metres of gas per year, in November. Stavytsky postponed the decision until January due to mass anti-government protests in Kiev.

In 2012, Ukraine selected a group of companies led by ExxonMobil to explore conventional gas deposits in the southern Skifska area on the Black Sea shelf, which has a potential output of 3 Bcm of gas per year.

The postponed deal would have formalised a production sharing agreement for these deposits.

In December, Russia agreed to cut gas prices for Ukraine by a third after Ukrainian President Viktor Yanukovich walked away from a trade agreement with Europe. Kiev said that a deal for cheaper Russian gas would not affect its standing agreements Western energy companies for shale gas exploration.
MRC

MOSCOW (MRC) - DowAksa Advanced Composites Holdings B.V. signed an agreement to invest 134 million rubles in the charter capital of Nanotechnology Center of Composites (NCC) at the World Economic Forum in Davos, the Composite holding said in a statement.

NCC is a joint project between the Composite holding and the Rusnano Infrastructure and Education Programs Fund (FIEP).

Composite said that as a result of the agreement, DowAksa, HCC and FIEP will each own one third of NCC's total chapter capital.

In January 2013, Dow Chemical, DowAksa, Rusnano and Composite signed a memorandum of intent (MOI) to develop a comprehensive strategy to launch production of carbon fiber intermediates, composite materials and solutions in Russia.

The document envisages the possibility of joint investment into Rusnano's portfolio companies that are part of Composite: CJSC Prepreg-SKM and NCC. At that time, the companies were planning to consider the possibility of working together on the Russian and world market in the power, oil and gas, aerospace and transportation sectors, as well as in projects to create building and transportation infrastructure.

NCC, which is based at the Technopolis Moscow technology park, was launched in the summer of last year. The project's budget was more than 2.75 billion rubles, of which Rusnano accounted for 1.1 billion rubles.

NCC plans to launch its second production line soon. The necessary equipment for producing polymer composite materials has been determined.

The Rusnano Infrastructure and Education Programs Fund was created in 2010 and handles the development of innovative infrastructure in the field of nanotechnology. In particular, the fund carries out a program to create nano-centers that should play the role of technology parks, venture companies and technology sites for startups. The program includes the establishment of more than 12 nano-centers with similar capabilities and working according to the same system, but specializing in different areas.

DowAksa Advanced Composites Holdings BV. is a joint venture between American Dow Chemical and Turkish AKSA Akrilik Kimya Sanayii A.S., which produces acrylic fibers. DowAksa develops and supplies its products and services, particularly carbon fibers, on the composite materials market.
MRC

MOSCOW (MRC) -- BASF and China Petroleum & Chemical Corporation (Sinopec) has broken ground on the construction of its world-scale isononanol (INA) plant in Maoming Hi-tech Industrial Development Zone, Maoming, China, reported BASF on its site.

At start-up in 2015, the plant, which is the first of its kind in China, will serve the increasing market demand for next-generation plasticizers. A newly-formed 50-50 joint venture company has been created, BASF MPCC Company Limited.

"High quality and reliable plasticizers help underpin industrial growth, and with this plant we will be well positioned to serve China’s growing demands. Additionally, this project brings us a step closer to BASF’s strategic goal to better serve local industries with local production in Asia Pacific of approximately 75% by 2020. The new joint venture with SINOPEC also solidifies our already strong partnership, and demonstrates BASF’s long-term commitment to China," said Dr. Albert Heuser, President, Functions Asia Pacific, President and Chairman, Greater China, BASF.

"This project is the first of its kind to bring BASF’s advanced INA technology into China, and to build a world-scale INA plant at Maoming Hi-tech Industrial Development Zone. It not only fills the country’s INA production gap, but also opens a new chapter for the strategic alliance between Sinopec and BASF. It closely unites two strong parties in order to enjoy mutual benefits and develop business together, taking our relationship to a new level," said Dr. Yu Xizhi, President of SINOPEC Corp. Maoming Company.

INA is used as the feedstock for the production of next generation plasticizers, including diisononyl phthalate (DINP) and non-phthalate plasticizer Hexamoll DINCH. DINP is widely used as a plasticizer in industrial applications such as automotive, wires, building and construction, while Hexamoll DINCH is BASF’s non-phthalate plasticizer for sensitive applications, including toys as well as food contact and medical applications.

BASF and Sinopec have a longtime partnership and jointly operate BASF-YPC Co. Ltd., a 50-50 joint venture formed in 2000 between BASF and Sinopec in Nanjing, China.

As MRC reported earlier, in summer 2012 the companies signed a Memorandum of Understanding (MoU) to further strengthen their cooperation by jointly exploring the possibility of building a world-scale isononanol plant in Maoming Hi-tech Industrial Development Zone, Maoming, China. And, in January 2013, BASF and Sinopec completed a joint feasibility study and taken the next steps in the establishment of the INA plant in China.

China Petroleum & Chemical Corporation (Sinopec) is a large scale integrated energy and chemical company with upstream, midstream and downstream operations. Sinopec is China's largest manufacturer and supplier of major petrochemical products.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas.
MRC

MOSCOW (MRC) -- China's state-run Sinopec posted an increase in production in 2013, compared to the previous year, said Upstreamonline.

Output for 2013 totalled nearly 442.4 million barrels of oil equivalent which was up about 3.4% on 2012's total which came in at just under 428 million boe.

Helping boost figures was domestic crude production which totalled more than 310.8 million barrels, up 1.4% on 2012, and helped offset a 0.8% decline in overseas production which totalled 21.5 million barrels.

Gas production for the year was also up, with the Chinese company producing just under 660.2 billion cubic feet of gas, up 10.4% on the 598 Bcf produced a year earlier in 2012.

As MRC informed previously, in late 2012, Sibur, a Russian gas processing and petrochemicals company, and Sinopec International (Hong Kong) Co. Ltd, the wholly owned subsidiary of Sinopec, signed an agreement that will see Sinopec purchase 25% + 1 share of Krasnoyarsk Synthetic Rubbers Plant JSC (KSRP). Sibur and Sinopec are also discussing projects on setting up a joint venture to produce nitrile and polyisoprene rubbers in Shanghai.

Sinopec Corp. is one of the largest scale integrated energy and chemical companies with upstream, midstream and downstream operations. Its refining and ethylene capacity ranks No.2 and No.4 globally. The Company has 30,000 sales and distribution networks of oil products and chemical products, its service stations are now ranked third largest in the world.
MRC

MOSCOW (MRC) - Russia's production of finished polymer products decreased by 7.9% in December 2013 compared with the level in November on the back of seasonal factors. However, total production of polymer products increased by 7.3% in 2013, according to MRC analysts.

The biggest reduction in the output occurred for the sector of plastic windows and sills. According to the Federal State Statistics Service, December production of plastic windows and sills fell to 1.7 million square meters, compared to 2.3 million square meters in November 2013. Russia's production of these polymer products reached 27.5 million square meters in 2013, up 7.3% from the level in 2012.

Production of polymer doors and door boxes in Russia was about 73,600 square meters in December, down 17% from the level in November. Total Russian production of polymer doors and door boxes in 2013 was 977,400 tonnes, down 4.7% compared with the level in 2012.

December production of plates, films and noncombined sheets fell to 66,000 tonnes, compared with 68,800 tonnes in November. Russia's production of these polymers products in 2013 was about 841,000 tonnes, which is only 0.6% more than in 2012.

Production of tubes, hoses and fittings made of polymers in December 2013 fell to 42,300 tonnes, from 47,600 tonnes in November. Total production of tubes, hoses and fittings made of polymers in 2013 was about 586,400 tonnes, down 17% year on year.

December production of plates, sheets, porous and combined films in Russia declined to 17,600 tonnes, down 7.8% from the level in November. Total Russia's production of these products grew to 206,000 tonnes in 2013, up 15.9% than a year earlier.

December production of polymer bottles fell to 1.1 billion units. Total Russia's production of polymer bottles was about 13.5 billion units in 2013, up 1% compared to the level in 2012.
MRC